Logistics and Industrial Boom In Scotland
posted on: 11th March 2022 / category: Uncategorised / posted by: UKDC
The Logistics and Industrial sectors remains the highest performing within Scotland’s commercial property sector with record levels of activity and demand outstripping supply in most areas.
Scotland will see the development of large industrial and logistics parks over the next couple of years but this already looks to be insufficient in tackling the growing demand for this type of accommodation.
The property market in Scotland accelerated during the second half of 2021 as many investors re-entered the market, particularly for industrial, key city centre office locations and retail warehousing including e-commerce. This trend is expected to continue to grow throughout 2022 and beyond.
The UK has seen many organisations make bold business decisions around re-shoring their operations following Brexit and more recently the COVID-19 Pandemic. This has driven land and rental values whilst having a significant impact on the supply of high quality assets within this sector.
Whilst this is great news for institutional investors, it does remain an issue for developers seeking sites and occupiers in trying to secure accommodation, a trend which is not set to change anytime soon.
We believe that land could therefore be more effectively used with organisations making better use of brownfield sites, existing assets and seeing more partnership and joint venture working between local authorities.